Albertsons Companies, Inc. announced Friday that the State of Washington Supreme Court has continued the temporary restraining order against the company’s previously announced $6.85 per common share Special Dividend to shareholders while the Washington Supreme Court considers if it will hear the state’s appeal. The TRO that was to end today will remain in effect until there is a further order issued by the court.
Albertsons Cos. has filed a motion to expedite the Washington Supreme Court’s review.
The payout to stockholders was originally scheduled to take place on November 7, but the Attorney General of the State of Washington, Bob Ferguson, filed a lawsuit on November 1 to block Albertsons Companies from a $4 billion payout to shareholders before a proposed merger with The Kroger Co. could be reviewed by state and federal antitrust enforcers.
The payment, Ferguson argued, risked severely undercutting the grocery giant’s ability to compete during the time period government regulators will be scrutinizing the merger.
A King County Superior Court in Washington state granted Ferguson’s motion for a nationwide temporary restraining order that blocked the payment from happening on Nov. 7.
Albertsons sought to overturn the restraining order contending that it was based on the incorrect assertion that payment of the special dividend would impair its ability to compete while its proposed merger with The Kroger Co. is under antitrust review, according to Albertsons.
Albertsons Cos. continues to believe that the claim brought by the Attorney General of the State of Washington, and the similar lawsuit brought by the Attorneys General of California, Illinois, and the District of Columbia, are meritless and provide no legal basis for preventing the payment of a dividend that has been duly and unanimously approved by Albertsons Cos.’ fully informed Board of Directors.
Albertsons Cos.’ proposed merger with The Kroger Co. is continuing through required regulatory review, including seeking clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
Related: Albertsons: Washington AG Denied Request for Injunction; Washington Sues to Block Albertsons Payout.